24 Nov 2011

South Canterbury Finance inquiry promised by Labour

6:37 am on 24 November 2011

The Labour Party says it will hold a major inquiry into the failure of South Canterbury Finance if it forms the next government.

Labour says the bailout of the troubled finance company, which was owned by the late Alan Hubbard, has cost the taxpayer at least $700 million more than was necessary.

The party's commerce spokesperson, Lianne Dalziel, says Labour would hold an inquiry that would investigate the causes of the company's failure.

She says the role of the Retail Deposit Guarantee Scheme would also be looked at, in particular whether some depositors knew the company was going to collapse.

Ms Dalziel is questioning some property transactions, including one property she says was sold for $3 million below its valuation on the first day of South Canterbury Finance's receivership.